RBI Advances Deadline for CRR and SLR Exemptions on Non-Resident Deposits for Rural Co-operative Banks

Introduction to the Regulatory Update

The Reserve Bank of India (RBI) has introduced a crucial regulatory modification affecting the compliance obligations of rural banking institutions. Through a recent official circular bearing reference numbers RBI/2026-27/242 and DOR.RET.REC.209/12.01.001/2026-27, published on August 25, 2026, the central banking authority promulgated the Reserve Bank of India (Rural Co-operative Banks – Cash Reserve Ratio and Statutory Liquidity Ratio) Fourth Amendment Directions, 2026.

This notification directly impacts the regulatory relief previously granted to Rural Co-operative Banks concerning the maintenance of the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). Specifically, the central bank has decided to curtail the exemption window that was originally available for newly mobilized foreign currency and non-resident rupee deposits. The banking assessee must now realign its liquidity maintenance strategies to accommodate this accelerated deadline.

The apex bank derives its authority to mandate and modify these liquidity requirements from multiple legislative provisions. The issuance of the Fourth Amendment Directions, 2026, is legally anchored in the following statutes: